HannyCo: Strategic CSR Initiative

Ideas for Sustainable value creation

Presented By: Team Code- 71

Contents
Alternative Assessment and scenario building Strategy mix for implementation Assumption for strategy mix Analysis of strategy mix chosen Necessary recommendations

Alternative Assessment and scenario building

The Methodology:

Name of strategy

Goals

Vehicles Rationalizati on

Measurement Financial results

Benefactors

Benefits

Time Frame Short term

Shareholder strategy
Altruistic strategy Reciprocal strategy Citizenship strategy

Profit

Shareholders Community groups and causes

Financial Benefits may not be measured Performance; Market goals Tangible

Give back Mutual benefits Responsibility

Cheque-book Donations philanthropy Public relations Governance Activity-based reporting Triple bottom line

Intermittent

The firm and the community

Varied to varied benefactors

Medium to long term planning

Long term horizon

Alternative 1 Assessment: Why to reject ?

The Shelter Homes

Pros

Cons

Running large number of centres 60 to 120 will take certain Media coverage leading to positive publicity amount management bandwidth May make HannyCo companies' brand more popular among These centres are vulnerable and prone to mis-happenings women which will have negative consequences on the HannyCo brand Considering them future source of trained man-power may be Can developed specific vocational skills that are not readily far fetched as we can not ensure that after getting trained the available in the market among the women (women sticking???) used to be distress women would stick with HannyCo Converting them in future as source of revenue may not go well with government and it may declare them to be not part of their CSR activities Approximately 4000 women may get the training, This is a small number compared to amount spent Total Money Available for CSR Possible increase in the amount in next 5 years Cost of running center for 1 day Cost of running center for 1 year Number of centres that it can run Number of Women in one shelter Total lifes touched 700,000,000 1233639178 15000 5475000 127.8538813 30 3835.616438

High uncertainty due the above facts make this a less attractive option

Alternative 2 Assessment: The case of partial rejection?

Education
Pros Cons The educational infra in India needs an urgent attention. India holds very big proportion of illiterates in this world and this will clearly help in Instead of building the school for 30-60 crores, it can adopt schools making the society better. which are currently not been run properly due to lack of funds. Running a good school in Delhi-NCR region with a capacity of around Moral and ethical values can be emphasized in these schools leading to 3000 students require 4-8 crores, this will considerably get reduced in caring and better society in the future. rural areas Students would get the awareness of the company and its brands early in their lives leading to higher sales in future. Higher maintenance costs may lead to running the budget

operational expenses (annual) school for 3000 students in urban area school in rural area(approximately half) Rs 6 Cr Rs 3 Cr

So HannyCo can adopt around 70 schools which will touch 70*1000=70000 lives directly As per the census of India, average rural household size is approximately 5, therefore lives of the members of family of a student studying in the school wild also be positively influenced. this initiative will touch (70000*5=350000) approx. 3 lakh lives.

Medium to low uncertainty but outreach is still a major issue, which in turn makes this alternative a less attractive option

Alternative 4 Assessment: Why to reject ?

Health & Hygiene

Case of Outright Rejection Setting up costs of any dispensary would be around Rs 40Cr. High setup costs make up as a deterrent to alterative acceptance A firm would not be able to make serious impact through its dedicated funds of 70 cr for CSR over medium term which is the primary goal as explained in later slides.

Neither we would advise them to invest funds in R & D because 70 cr is a very small amount from research point of view and it is a field where one should have a lot of patience and company would not be able to touch many lives through it.
The whole point of alternative assessment is acceptance of Reciprocal strategy at HannyCo, which is not acceptable by the implementation of these 3 alternative, HannyCo should not believe in cheque-book philanthropy and has to be become a stakeholder in social structure via CSR activities.

Strategy mix for implementation

The Reciprocal strategy at Play

Higher CSR reports, the more we can closely link the firm to providing value.

Determine 3 business objectives and priorities of company and consideration of alternative mix to carry out

The alternative 3 has partial but maximum considerations to be applicable via the alternative acceptance using 6 parameters of given methodology

Alternative 3 : Analysis for Acceptance

Building Entrepreneurs at Grass root level *Vision for CSR : Inclusion at local level via demographic integration by promotion of trade practices of HannyCo products and in turn promotion of Financial independence over the long term horizon for our Entrepreneurs

Objectives to be achieved: 1. Sustainable sourcing 2. Better Livelihood 3. Action taken reporting to achieve rural growth via long term integration

* Vision in line with the industry FMCG to promote healthy initiatives.

Vehicles for the strategy shall be: 1. Abundant rural population craving for financial independence and 2. The idea of vocational education (alternative 2)

Alternative 3 : Analysis for Acceptance

Pros Cons Employee like integration of Entrepreneurs; Ssimple concept of HannyCo providing a large quantity of its products to such women entrepreneurs who in turn will sell these at a small profit percentage Making the rural women literate is a prerequisite, and then making products reach rural areas is also a formidable task within itself. sense of self-dependence can be imbibed through this scheme, and Owing to low income levels, sales might be difficult to achieve at the companys continued sales can also be ensured- > Objective of first ; A model might not be successful in the urban areas too, increased business ensured owing to extreme competition and easy availability of other sellers a micro-enterprise programme that creates opportunities for women to sell a range of affordable products door-to-door in rural areas -> Product penetration justified; unexplored sector in which the company aims to capitalize its reach, especially in the rural areas

Higher sales drive and salesforce development makes this alternative a majorly attractive option to consider for the alternative mix.

Necessary recommendations as roadmap

Alternative 3
HannyCos Sustainable livelihood program

Alternative 2

what we propose is they can invest around 20-30% of its CSR funds in adopting schools for vocational training and salesforce training. The rest of the CSR funds are to be used for salesforce mobilization and Woman entrepreneurs being the main benefactors of these funds Safe drinking water, sanitation household toilets, community hospitals to achieve community based development in long term.

THANK YOU